Now that Google has extended the number of countries from which developers can sell paid apps, have they also extended the number of supported currencies?

I know that the Market now shows prices in the user's local currency; what I want to know is can developers now set prices in currencies other than US dollars, Sterling, Euros and Yen? For example, what currency is used when an Australian developer sells an app? Do they set the price in US dollars or are Australian dollars now supported?

The developer sets the price in the developer's local currency. The buyer purchases the app in his/her local currency. Google does the conversion.

Recently the market has started showing the prices already converted to the local currency. That is more to help you understand what the price really is. You still pay with whatever your local currency is and the developer still receives whatever his/her local currency it.